In the 1st quarter 2020, the chemical-pharmaceutical industry in Germany did not yet feel the full force of the corona pandemic. This emerges from the most recent quarterly report by the German chemical industry association Verband der Chemischen Industrie (VCI). Production and sales in Germany’s third largest industry even went up. Mainly because of the strong demand for pharmaceuticals, various hygiene products and packaging materials, the industry was spared major setbacks still in March. All the same, a severe recession is expected, as a VCI membership survey shows. A decline in orders, disrupted supply chains and the lack of transport capacities are causing problems for companies.
In January and February 2020, the crisis initially made itself felt only in business with Asia, since the Chinese economy was shrinking due to the lockdown. From March onwards, the corona pandemic slowed economic growth and the demand for chemicals globally. Many parts of the European economy came to a standstill.
VCI President Christian Kullmann comments:
“2020 is going to be a difficult year for the chemical-pharmaceutical industry. Companies will strongly feel the effects of the corona crisis in the coming months. 75 percent of VCI members are expecting a sales decline in Europe. Therefore, not only our industry but the entire German economy urgently needs an investment and growth programme – instead of new burdens. Furthermore, we need genuine and holistic sustainability strategies and not projects that are solely oriented to the ecological component.”